Analyst

Steve

Equity Bottom-Up

Shenzhou International / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nike-inc-cl-b" target="_blank" data-smartkarma-citation="entities:6658:1" rel="noopener">Nike (NKE US)</a> reported better than expected 1Q24 results this morning, with the stock up 8% in after market trading. </li>
<li>Nike's inventories declined by 10% yoy during the quarter, which bodes well for <a href="https://www.smartkarma.com/entities/shenzhou-intl-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10415:1" rel="noopener">Shenzhou Intl Group Holdings (2313 HK)</a>, as sales to Nike made up 30% of Shenzhou's sales. </li>
<li>Shenzhou is trading at 15x 2024E PE, compared to an average of 21x forward PE over the last decade. </li>
</ul>



Nike (NKE US) reported better than expected 1Q24 results this morning, with the stock up 8% in after market trading. 
Nike's inventories declined by 10% yoy during the quarter, which bodes well for Shenzhou Intl Group Holdings (2313 HK), as sales to Nike made up 30% of Shenzhou's sales. 
Shenzhou is trading at 15x 2024E PE, compared to an average of 21x forward PE over the last decade. 


Shenzhou Intl (2313 HK):  Nike's Inventories Declined By 10% Yoy in 1Q24

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Index Rebalance

<ul>
<li>We screen the Mainland Securities ahead of the HSCEI review result, due on 20 Nov 2026 after market close.</li>
<li>One ADD and one DELETE are screened as high-conviction calls this cycle.</li>
<li>We also include one mid-conviction ADD and one low-conviction DELETE.</li>
</ul>


We screen the Mainland Securities ahead of the HSCEI review result, due on 20 Nov 2026 after market close.
One ADD and one DELETE are screened as high-conviction calls this cycle.
We also include one mid-conviction ADD and one low-conviction DELETE.


Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.</li>
<li>In this insight, we take a look at the potential index changes and capping flows for HSCEI index rebal event in September 2026.</li>
<li>Based on the latest data, we see one ADD and one DEL.</li>
</ul>


HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.
In this insight, we take a look at the potential index changes and capping flows for HSCEI index rebal event in September 2026.
Based on the latest data, we see one ADD and one DEL.


Quiddity Leaderboard HSCEI Sep26:One Change Likely; ~US$146mn One-Way Flow

Pan-Asia Tactical Market Calls (Quant-Driven), MRM Research

Nico Rosti

Pan-Asia Tactical Market Calls (Quant-Driven)

MRM Research

Quantitative Research

Equity Derivatives

Shenzhou International / Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shenzhou-international-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:10415:1" rel="noopener">Shenzhou International (2313 HK)</a> will keep its AGM on May 27. A cash dividend of HKD 1.20 with an ex-date of Jun. 3, 2026 has been announced.</li>
<li>The stock closed the week at HKD 46.50. It has experienced a downward trend since Nov 25, losing approximately 37% of its value since then. </li>
<li>During the last 5 weeks the stock continued to close marginally lower each week, our model signals it may have reached a temporary bottom, we analyze the potential rebound targets.</li>
</ul>



Shenzhou International (2313 HK) will keep its AGM on May 27. A cash dividend of HKD 1.20 with an ex-date of Jun. 3, 2026 has been announced.
The stock closed the week at HKD 46.50. It has experienced a downward trend since Nov 25, losing approximately 37% of its value since then. 
During the last 5 weeks the stock continued to close marginally lower each week, our model signals it may have reached a temporary bottom, we analyze the potential rebound targets.


Shenzhou International (2313 HK) Tactical Outlook Ahead of May 27 AGM / Cash Div Announced for June

<ul>
<li>The HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.</li>
<li>In this insight, we take a look at the potential index changes and capping flows for HSCEI index rebal event in December 2026.</li>
<li>We expect two ADDs and two DELs for December 2026. We also estimate there to be ~US$118mn in one-way flows including the effects of capping.</li>
</ul>


The HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.
In this insight, we take a look at the potential index changes and capping flows for HSCEI index rebal event in December 2026.
We expect two ADDs and two DELs for December 2026. We also estimate there to be ~US$118mn in one-way flows including the effects of capping.


Quiddity Leaderboard HSCEI Dec26: Final Ranks; Two ADDs/DELs Likely; One Change to Expectation

China

Shenzhou International Group Holdings Limited is a vertically integrated knitwear manufacturer. The company produces knitted sportswear, casual wear, and lingerie, and offers services such as customized fabrics, dyeing, finishing, printing, embroidery, cutting, and sewing. It is headquartered in Hong Kong and was founded in 2005.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Shenzhou International (2313 HK)

Shenzhou Intl (2313 HK): Nike's Inventories Declined By 10% Yoy in 1Q24

Note the strong share price momentum. Shenzhou (2313 HK) remains the best proxy for gaining exposure to the global sportswear sector.

Steve

HSCEI Dec 2026 Index Rebalance Forecast

We expect Shenzhou to be deleted below rank 60 and Hua Hong Grace to fill its seat, while a mid-conviction WuXi Bio ADD would also see ZTO deleted.

Ke Yan, CFA, FRM

Quiddity Leaderboard HSCEI Sep26:One Change Likely; ~US$146mn One-Way Flow

Hua Hong Semiconductor (1347 HK) is ranked 38th and is an expected ADD. Shenzhou International (2313 HK) could get deleted due to this addition.

Janaghan Jeyakumar, CFA